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I don't know this stuff. Only common sense: owning 1 stock is not very diverse. I would *guess* somewhat diverse but it is a guess. I hope you have good notes.
Well with this one I am having trouble
I would re-do the problems I indicated in the other post.
I will but I need this one
I would look in your notes about what makes a portfolio diverse or not. My thoughts would be: lots of different stocks in different industries, perhaps based in different countries, many different bonds, some dollars in a bank account. Your portfolio has only 1 stock, 1 junk bond
Not diverse would be just one thing, treasury bonds for example. so minimally diverse would be my guess
junk bonds and 1 stock in a "developing" company are very risky. So 51% of the portfolio is very risky and 49% is very safe. Is there a rule of thumb for amount of risk versus age and income?
so could it be desribed as agressive or moderate?
yes, but now you have to dig through your notes to figure out which it is.
@phi An aggressive portfolio is more heavily weighted toward risky investments with potential for higher short-term returns. A conservative portfolio is more heavily weighted toward safe investments, which may provide modest long-term returns.
it's almost 50-50 between risky and safe. So you could argue moderate
not a grandmother investing her retirement. how about young, married with a young kids. Has a good job and can afford to take a loss, but wants to take some risks to build a college fund for the kids?
so for part 3, make up some person, give them investment goals, and reasons for having some risky investments and reasons for safe investments.
probably the wife is a doctor and the husband is an engineer
sure that would work.